Moody’s Investors Service has taken action on the long-term ratings of $1.7 billion in jointly supported letter of credit-backed municipal bonds.
Moody’s said it upgraded 10 bonds, downgraded seven bonds and affirmed 10 bonds. The action resulted from on-going surveillance of 754 letter of credit backed transactions that are rated based on a joint default analysis, the rating company said in a statement.
Moody’s joint default analysis approach looks at the probability of default of both the obligor and the letter of credit provider.
The upgraded bonds were:
Philadelphia, Penn. Gas Enterprise with support from JPMorgan Chase Bank, to Aa1 from Aa2;
Philadelphia, Penn. Gas Enterprise with support from Barclays Bank, to Aa3 from A1;
Philadelphia, Penn. Gas Enterprise with support from RBC, to Aa1 from Aa2;
Philadelphia, Penn. Gas Enterprise with support from PNC Bank, to Aa3 from A1;
Philadelphia, Penn. Gas Enterprise with support from Wells Fargo Bank, to Aa1 from Aa2;
Pittsburgh Water and Sewer Authority, Penn. with support from Bank of America, to Aa3 from A1 (this is on a watch for an upgrade);
Pittsburgh Water and Sewer Authority, Penn. with support from PNC Bank, to Aa3 from A1;
Sacramento County Sanitation District Financing Authority, Calif. with support from Bank of America, to Aa2 from Aa3;
Sacramento County Sanitation District Financing Authority, Calif. with support from Morgan Stanley Bank, to Aa2 from Aa3 (series 2008B and 2008D).
The downgraded bonds were:
Ohio Air Quality Dev. Authority with support from JPMorgan, to Aa2 from Aa1 (series 2008A and 2008B);
Montgomery County, Penn. with support from U.S. Bank, to Aa2 from Aa1;
Orlando-Orange County Expressway Authority, Fla. with support from Bank of Montreal, to Aa2 from Aa1;
Orlando-Orange County Expressway Authority, Fla. with support from Barclays Bank, to A1 from Aa3;
Pittsburg Public Financing Authority, Calif., with support from Bank of the West, to Aa3 from Aa2;
Tacoma (Port of), Wash. With support from Bank of America, to Aa3 from Aa2.
